The company had set out to raise between A$10mln and A$15mln, but it had oversubscriptions amounting to A$20mln.
It has therefore decided to increase the size of the placing to A$25mln. The company said its decision was influenced by the ‘high calibre’ the new investors and the significant level of demand.
"The level of support the company received from institutional and sophisticated Investors in Australia and the UK is a step change to only a few short months ago, reflecting the substantial de-risking that has occurred at Project Icewine as a result of the recent Icewine-1 exploration well,” said managing director Dave Wall.
Proceeds from the placing will be used for the second phase of work at Project Icewine, where the company intends to prove the production potential of the HRZ oil shale discovery which was confirmed in the first Icewine well.
Specifically, the cash injection will fund a 2D seismic programme (spanning 750 kilometres), and the completion of the acquisition of 174,000 additional acres adjoining the existing Icewine project area.
It will support the company as it advanced to the drilling of the next Icewine well, which will be a horizontal well suitable for fracking and production testing.
The next well is currently planned for the first quarter of 2017.
Wall added: “The funds raised will bring the joint venture to the doorstep of the next transformational event for the project, that being the drilling of our second well, Icewine#2H.
“We look forward to continued newsflow over the next few months as the planning for the next well progresses as well as firming up of potential flow rates and economics."
This year’s success in Alaska saw 88 Energy shares rise as much as 800% through the first four months of 2016, and the company is now looking to follow up the encouraging early results.
The next phase of operations are designed to reveal material insights into the project's commercial production potential.
The possible scale of Icewine’s HRZ shale play is estimated in ‘billions of barrels’.
And the upcoming phase of work could prove crucial in 88 Energy proving the very promising estimates.